Brand behavior - portable mp3 player by anubhab & krishna - IWSBPresentation Transcript
Portable MP3 Player
Flow of Presentation Market Consumer Target Segment
Indian Consumer Durable Market
Choice of Brand
Category: Portable Music Player
Section I: THE MARKET
Structure of Indian Consumer Market
Consumer Durable Market in India Y-o-Y Growth of Consumer Durables in India (%-age) *Source: Group compilation from sources http://www.expresscomputeronline.com/20080121/market02.shtml, http://www.pcb007.com/pages/zone.cgi?a=15755, http://info.shine.com/Industry-Information/Consumer-Durables/902.aspx
Category-wise Dispersion (2009) *Source: Group compilation from sources, , http://www.scribd.com/doc/24934409/Changing-Consumer-Durables-Industry-in-India
Ownership of consumer durables by households
Trends in Sales: Portable MP3 player Number of Units Sold: India Y-o-Y Growth in Units Sold(%-age)
Average price of portable MP3 players in India in 2009 is Rs. 1100 per unit
Highly competitive market with approximately 100 different brands available including 3-4 leading brands, 15 brands that are well known names of electronics and consumer electronics industry and other local and cheap Asian imports.
*Source: Group compilation from sources http://www.indiahousing.com/mp3-players-india.html, http://www.scribd.com/doc/24934409/Changing-Consumer-Durables-Industry-in-India
Market in Developed Countries The market in 2010 till September has shown a decline of 12% in unit sales, 7% decline in sales revenue Only segment with a slight boom was touch screen mp4 players Source: GfK Retail and Technology Global Report, September 1, 2010
Sony dominates the market owing to the brand equity created by Sony Walkman® (portable cassette player) followed by Apple and Philips.
Apple and Sony are the dominant players in Tire1 cities, Sony and Phillips dominates in Tire 2 cities while Tire 3 and Tire 4 cities are more dominated by various cheaper brands.
*Source: Group compilation from sources www.pluggd.in/apple-ipad-price-in-india-297, www.apple.com/in/pr/library/2010/03/05ipad.html
The Indian economy is growing by 8% (approx), with the increase in disposable income and positive growth in upper-class, upper middleclass and middleclass pose serious opportunity for consumer durables.
The sale of consumer durables have reported an average 8.5% growth through out last 4 years with a CAGRvalue of sales as 7%.
The Category ‘Portable MP3’ player is a highly fragmented market with nearly 100 different brands available with top 5 brands having 38% of market share.
Section II: THE CONSUMER
Consumer Demographics Based on Age Group Age Group
The majority of MP3 Player buyer is of the age group 18-40 years, middleclass or upper middleclass, from tire 1, tire 2 cities.
*Source: Group compilation from sources www.marketresearch.com/product/display.asp?productid=1375090, www.epinions.com /Electronics
Ownership of Popular Physical Assets/Durables at Urban Household Level *Source: JUXT, Indian Urbanites 2009 Study
Motivation Behind Use of Electronic Gadgets *Source: JUXT, Indian Urbanites 2009 Study
Hobbies and Interest: Urban *Source: Marketing Whitebook
Frequency of Listening to Music Total Listening to Music Use of MP3 Players as a Music Player Though the average price of Portable MP3 player is presently `1000, its not perceived as an utilitarian product *Source: Primary Research
Usage of Portable MP3 player Place of Use Sharing of MP3 Player High degree of personal involvement associated with the product *Source: Primary Research
Attributes of Importance in Choosing a Brand High involvement product, ego-centric Scale of 1-5, 1 being least important and 5 as most important *Source: Primary Research
Unaided Brand Recall
Apple enjoyed a 100% top of the mind recall
*Source: Primary Research
Brand Perception Apple® and Sony® receiving the highest association weight-age and highest brand recall (unaided) again goes on to establish the fact that this category is considered above utilitarian
Purchase: Influencers Establishes the high dominance of young generation/youth in the purchase of the category *Source: Primary Research
Point of Purchase Accompanied By Point of Purchase Motive of Purchase
Well thought and planned purchase, preference of modern trends and influenced by peer
*Source: Primary Research
Product associated with ego and ‘feel good’ factor rather than mundane or utilitarian need
High involvement of young generation in purchase and purchase decision
Preferred segment is of young and from middleclass to upper middleclass background, from Tire1 or Tire2 cities
With the growth of economy Tire3 cities are also opening up as probable customer base
Quality and looks being the highly rated attributes in the choice of brand, a certain premium may be charged on price especially in the tire1 and tire2 cities
In order to cater to tire3 cities cheaper variants with high design features is a must to beat the competition of cheap Asian imports
Marketers Take: Go for High Value mp3 Player with look, style & Design Attributes.